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Port of Port Royal development deal hasn't sparked sales jump yet

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Port Royal Realtors haven't seen a sales jump in town since the state this month signed a $26 million agreement with a buyer to develop the Port of Port Royal, but they're using the prospect of the massive housing and retail project to stir interest in surrounding properties.

The S.C. State Ports Authority agreed Nov. 8 to sell the 51 acres of high ground and 265 acres of marsh to Port Royal Harbour LLC, a partnership between Main Street Realty of Hilton Head Island and Atlanta-based Global Asset Alternatives.

The land could become a business and entertainment hub at the waterfront edge of downtown Port Royal, with hundreds of offices, restaurants and homes, a 4-story hotel and a 225-slip marina.

The contract allows Port Royal Habour 90 days to investigate the property's value and finalize the deal.

Realtors said they anticipate an upswing in Port Royal real estate business once construction starts, mirroring an increase in 2004 when plans to sell the port were announced.

But buyers are waiting until Port Royal Harbour closes on the property to snap up nearby parcels, said Palmetto Real Estate broker Richard T. Poore Jr.

"A lot can happen in those 90 days" while the company decides whether to buy the port, Poore said. "How do you know it's going to explode until you see something down there?"

At Weichert Realtors Apex Realty, two blocks from the port on Paris Avenue, a poster with drawings of the envisioned development sits in the center of the room.

John Smunk, a Realtor, said most interested buyers already have heard about the development. But if they haven't, he shows them the renderings.

"It gives people a better idea," he said. "Once you start describing what's going to happen, people get excited."

Since the buyer's agreement was signed, "I haven't seen any big increase" in sales, he said. But "it will take a while for (the port development) to make an impact."

The project is expected to last several years.

Although the announcement of the port deal is "encouraging," said Kathy Hodges, a Realtor with Palmetto Real Estate, "it's not loosening the money up yet."

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